With the rapid development of the Internet and the close cooperation between countries, cross-border e-commerce is developing faster and faster. Domestic buyers can buy high-quality and low-priced foreign goods without leaving home, and this model is increasingly popular among overseas shopping players. So do you know what business models there are in cross-border e-commerce?
B2B cross-border e-commerce, business to business, also known as online wholesale, is a business model in which foreign trade companies exchange products, services and information through the Internet. The final customers of B2B cross-border e-commerce companies are enterprises or enterprise groups. At present, in the transaction scale of my country’s cross-border e-commerce market, the transaction scale of the B2B cross-border e-commerce market accounts for more than 90% of the total transaction scale. Representative companies mainly include Dunhuang.com, Made in China, Alibaba International Station, and Global Resources Network.
B2C cross-border e-commerce and C2C cross-border e-commerce are collectively referred to as online retail. B2C, that is, business to consumer, is the online retail activity conducted by cross-border e-commerce companies for individual consumers. At present, the proportion of B2C cross-border e-commerce in the transaction scale of my country’s overall cross-border e-commerce market continues to rise, and representative companies mainly include AliExpress, Milan.com, Lantingjixu and Dalong.com.
C2C cross-border e-commerce, or consumer consumption, refers to online retail business activities conducted by individuals engaged in foreign trade activities to overseas individual consumers. At present, my country’s cross-border e-commerce exports are mainly B2B and B2C, and imports are mainly B2C.
In addition to the above three types, F2C cross-border e-commerce is also emerging, that is, factory to consumer, that is, from factory to consumer. The F2C model delivers the products of the processing plant directly to the hands of consumers, which can be understood as the factory selling products directly with the help of the network platform. F2C allows consumers to place orders to the factory online, which is an upgraded version of the B2C model. The biggest advantage of F2C is the strong offline industry support, effective quality control throughout the process, and rapid market response, which is something that B2C cross-border e-commerce cannot compete with.